One simple fact proves the latest Biden tax hike is baseless class warfare
S E E D E D C O N T E N T
Joe Biden was elected on promises of moderation and "unity," but he has wasted no time early in his presidency advancing multiple huge tax hikes. The latest example is the White House's plan almost to double the top capital gains tax rate, the tax applied on investment growth when assets are sold.
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Economists warn this hike would hurt the economy and reduce investment in small businesses. But economic downsides from taxation are nothing new. What differentiates Biden's latest tax push is that it would punish investors without actually raising much tax revenue. You know, the ostensible purpose of taxation.
Here's why: Past a certain point, higher tax rates don't necessarily guarantee more total tax revenue because peoples' behavior changes in response. For example, a 10% income tax will always raise more revenue than a 100% income tax because no one would work if they had to give up their entire paycheck to Uncle Sam.
In expanding the top capital gains rate to 43.8%, Biden would actually far exceed the capital gains tax rate that raises the most revenue. According to the Tax Policy Center and Congress's Joint Committee on Taxation, the revenue-maximizing capital gains tax rate is closer to 28%.
That's right: Biden wants to raise taxes far beyond the rate at which they raise the most revenue.
"Tax rates above the revenue-maximizing rate are punitive: The government is giving up revenue simply to punish the rich," economist and former Federal Reserve governor Lawrence B. Lindsey explains in the Wall Street Journal.
"It is shocking that this policy got past the economists in the administration, many of whom have had long and distinguished careers," Lindsey continues. "The Biden administration is blowing up one of the key concepts that has united the economics profession: maximizing social welfare. It now believes in taxation purely as a form of punishment and is even willing to sacrifice revenue to carry it out."
At this point, the Biden administration is pushing tax policy that prioritizes punishing success and antagonizing the successful even if it means less government revenue. Raising capital gains taxes this high is the definition of a "lose-lose" scenario.
With this reality in mind, Biden's latest move looks like a stark departure from his "moderate" facade. When it comes to tax policy, a Bernie Sanders-esque class warfare mentality is seemingly driving this White House.
Brad Polumbo (@Brad_Polumbo) is a Washington Examiner contributor and host of the Breaking Boundaries podcast.
Tags:Opinion, Beltway Confidential, Blog Contributors, Joe Biden, Taxes, Economy, Bernie Sanders, Policy
Original Author:Brad Polumbo
Original Location:One simple fact proves the latest Biden tax hike is baseless class warfare
Biden is for increasing taxes and Congressional Democrats want to lower them for the wealthy.
Gee, I wonder who will win the battle?
I think i know who will not win, the middle class.
I believe you are right.
I just think it is really odd that some Democrats (a whole lot, in fact) always talk a good game about taxing the rich and "making them pay their fair share"--whatever THAT is while working hard to give the wealthy huge tax cuts.
We in the middle and working classes will be the big losers particularly if we don’t live on the west or northeast coasts of the country.
They intend to cut taxes for the rich in their America and raise them on the upper middle class while cutting working class jobs in our America.
Their idiot is speaking now. Who cares!
Considering he was talking about the subjects you just were maybe you should. Then you'd be more informed.
There may have even been a few things he said that you MAY even have agreed with.
Like helping get internet into rural homes, even most of the republican congress that was present stood up when biden talked about China.
Just so you know, I am very non party !
I firmly believe Both parties have both good and bad ideologies. I also believe very much that this country is much stronger when we are united.
I research every candidate and vote for the People that I actually believe would be best suited for the position they are applying for. I think they work for us. WE the People.
Not the democrat or republican party. I also believe that straight party line voting is how bad politicians get power over us.
I missed the first part of Biden's speech but I liked some of what he had to say and didn't like other parts. But that's just me.
To each their own.
So do the "middle class" earn more than $400k a year?
The vast majority of Democrats are "middle class" so the whole bullshit narrative Republicans are trying to foment is bullshit, pure and simple. Only dumb shits and Trump turd gurglers believe that ridiculous nonsense that Biden's proposed tax increases will hurt the middle class, and the ones spouting such bullshit are clearly the top 2% who are deathly afraid of having their gravy train curtailed. It's sad that so many conservatives appear to be so fucking gullible.
Many Americans who care about our country. I haven’t missed one of a President of either party since I became a registered voter in 1978.
Good XX but one wonders which one is it ?
thinkin "appear" could disappear, cause they, sadly enough, are that "fucking gullible" .
Is is just as sad to you that Democrats TALK about raising taxes on the rich, but then are desperately trying to give the wealthy a huge tax break? Are you just as gullible for believing that Democrats MEANT they would raise taxes but you now can see them fighting for the rich?
Why are Democrats trying to give the wealthy a huge tax cut by repealing the SALT caps?
Just a simple answer without the usual "witticisms".
No Republican crap, just an HONEST explanation of why Democrats are catering to their rich constituents in places like CA, NY, NJ, etc.
how about due to OUR LOBBYIST BOUGHT AND PAID FOR POLITICIANS, as TOO MUCH $ is able to be spent to determine laws that which can and will determine who actually pays what.
So your claim is that Democrats sold out to their wealthy donors.
Good admission on your part, but I'll bet a dollar to a donut that it won't make a bit of difference to you when you vote.
First, I agree, removing the SALT cap of $10k would help primarily the top 20% of earners and those who live in high cost of living areas like CA and NY. I do think that if those high earners are paying more than $10,000 in State and local taxes (which are far more likely to go directly back into communities than federal taxes) they should be allowed to write those expenses off. It would reduce the amount of federal taxes taken by about $88 billion annually but, if as Democrats suggest, we go after the top 2% and corporations that aren't paying the taxes they actually owe we would raise the amount of taxes taken by between $400 billion to $1 trillion which would more than make up for the loss of revenue the removal of the SALT cap would lose.
We shouldn't allow SALT Deductions at all, IMO.
State and local taxes are different everywhere, federal taxes are separate and different and should be the same everywhere for all Americans.
Yes, 96% of the benefits counts as "primarily."
st, we go after the top 2% and
You want to go after the top 2% by enacting a tax cut that saves the average millionaire $44,000 in annual taxes. Makes sense.
We shouldn't allow SALT Deductions at all, IMO.
Closing tax loopholes like that should be the priority of tax reform. It's a benefit for wealthy taxpayers that subsidizes some local governments and not others. It's really indefensible if you believe in fair and progressive taxation.
If you wanna tax is capital gains is the only real way to do it. It being as low as it is has been a massive boon to the wealthy for a long time, I dont give a shit about my income tax, that isn’t where I made my money, not even close.
I still don't see why SALT should be deductible for federal income taxes anyway.
Just do away with that deduction entirely.
Sounds fair to me.
This article does not mention that the high rate kicks in only if you make over $1 million/year. This means it affects 0.3% of earners. So this affects only the super rich. You know, the people who use all kinds of dodges like carried interest and stock buy backs to shield massive amounts of income from reasonable taxation. The average small business owner in the US earns about $75K. All of the 'facts' and 'figures' about the correct rate for capital gains are irrelevant bullshit.
Like so many things, this is projection. The limitation on the SALT deduction was done to punish Democratic states, so Democrats must be doing this for the same reason. Nope. Democrats actually care about people's situation and work continuously to try and improve it. Republicans, on the other hand, would have knocked 20 million working class Americans off healthcare were it not for McCain having a conscience.
Yeah, having the top 0.3% to pay more than 23.8% Federal tax on their income, like the rest of us, is class warfare. Republicans are full of shit.
If it wasn't so pathetic, i'd find it humorous. Working class played Republicans always in lock step defending the "uber" rich, as they can't 'Lift" themselves but barely on average, as they vote and back policies against their own interests, while appearing to have some, but too blind to see they have been played, and not much work was required to obtain a result certain wons had desired. It's almost as if, if told to jump off that cliff, they would, yet, one not need to jump off a cliff to see and read the Cliff Notes, as they are in the big Red Dogs journal, omitted nocturnal as they remain in the dark, smell gas , and enlighten that spark, culling those heard while not aloud, cause immunity is herd disavowed due to a denial in science, class, and the general fck you, cause you can kiss my ass if you think i care about US wherein, it might convince me it is a slight inconvenience as i will not have such an absurdity affect my immune eye heard a T, just the other day when i talked with so many who will be refusing to enlighten, cause the Con Fuse has already bin lit and the fix is broken, as from words herd spoken, many are chokin an that Bwhich denial cannot asphyxiate all that is wrong when people lean far right and wiggle their nose and ears at science based on baseless fears, that were turned by those that steers the bullship into the rocks grown and thrown out the door with the bathwater odf these glass houses housing many panes, asz the babies are crying while science denying, cause their class was dismissed, and most were already a little tardy, as they are early lately, cause their absent minds prove none to soon to see the lunacy of the lunars eclipsed due to no enlightenmeant for they, that contrive their most important decisions to be cut from incisions of the continuing divisions on social diseased media matters, cause with all this horse shit, there will be splatters, butt wipes do not matters when it Depends on the means to their booked ends, cause a message of ignorance ruling dowst do descends peep holes looking for a way up and out, and sheltering the richest is a pour not Kool of Aid for those who already a system played, yet, enough not said, but, right now outta here and off to bed, as i live the dream, of working to support a tiny fraction of US, who've bought and paid their way to stay inn the Lobbyists tristam and taught to see how those so tender try and cut those that meet inn the lobby to smooth the rough patch sanded just fine for those who wrote the Laws designed to shield their fat monetary asses, yet the working class GOP pretend to not see the difference in classes, perhaps, a new pear of Glasses...
WHY ARE DEMOCRATS ATTEMPTING TO GIVE THE WEALTHY A HUGE TAX CUT??????
Cherry Pickin knows
Can't just admit you were snookered by Democrats' tough talk about taxing the wealthy and making them pay their fair share, but now are more interested in cutting them a huge break.
I'd call that being gullible.
Well i would consider you to be the expert. I haven't read up on any of this, so 'i'll not comment yet, but, i will STILL pose the question to you, who has been easier on the wealthy, Dems or the GOP ?
Why are you attempting to change the subject?
Stick to the topic--if that is even possible.
Weird that your failure to read up on this doesn't limit your replies.
THEY'RE NOT. You're probably talking about the elimination of the SALT cap. To get into the top 3% of earners, you have to make $200K. The alternative minimum tax reduces/eliminates the SALT deduction for about 3.5% of the top earners. So, the SALT tax helps out people living in high cost/income states, and keeps the money in-state for better local management of tax revenues -- something conservatives are always saying we should do. Perhaps someone making $200K in your state is wealthy, not in mine where the average home price is $450K.
Crap. Of course they are. Denial is stupid in the face of facts.
The problem with your 'facts' is that they never seem to take into account the Alternative Minimum Tax. This second calculation of your taxes starts phasing out your deductions at about $500K for individuals and $1M for couples. So, like the increase in the capital gains tax, which almost doubles the capital gains taxes for people making over $1M, high income earners lose the benefits of the SALT deduction.
see post 2 2 5
Also from taxfoundation.org:
If you think that Republicans would actually hurt the rich, think again. I saw small increase when TCJA happened, probably because the AMT no longer affected me when the cap was raised. I prefer the old system because it kept more money in my state. We only see about 43 cents on the dollar returned, so the SALT deduction helped ameliorate that.
well, if it doesn't hurt the rich, why are Democrats so adamant about lifting the cap?
Because it actually does hurt regular people in the high cost states. Duh...
no it doesn't.
besides, the rich can afford it!
You are now complaining that Biden is both cutting and increasing taxes on the wealthy.
I can't help how you understand what you read.
Then how do you explain this article of yours?
I dont have to explain what others write for you. do i?
So why are some Democrats fighting so hard to give the wealthy a tax cut?
Only if you define the wealthy as those having a big mortgage and big local and state tax bills...
Or if you define the wealthy as the top 1%, who reap the majority of benefits from the SALT tax rebate.
No, those are the truly wealthy Biden and the Democrats are raising taxes on. Get it right!
How can you possibly believe that after all the times the data on the SALT tax issue has been posted here? Even the NYT now admits it.
Educate yourself and stop regurgitating empty talking points.
Bull.
Repealing the cap benefits the wealthy the most.
But don't believe me, believe the facts here:
SALT Cap Repeal: SALT Deduction and Who Benefits From It (taxfoundation.org)
Then giving those wealthy people a huge tax cut is rather stupid, isn't it?
Repealing the cap on SALT deductions favors the very wealthy immensely.
Whether or not you are wiling to admit that or even see it.
4% of the benefits of the SALT deduction went to the middle class, and resulted in average savings of $27. The top 1% (who received the majority of the benefits) saved an average of over $33,000 in their federal bill.
Yeah, I notice all the posters who are for removing the cap don't want to acknowledge the facts and who a cut benefits the most.
Hypocrites--every last one of them.
They just won't 'fess up to wanting tax breaks for the very wealthy.
i'll uncle Fester up. I DON'T want tax breaks for the Rich, irregardless of WHO is attempting to push them through, but are you going to attempt to sell US that the Democrats out due the GOP when it comes to helping the uber RICH AVOID THEIR FAIR SHARE....? C ause Homie don't think you should be going there.
I made no claim OTHER than the simple fact that there are Democrats trying to give the wealthy a HUGE tax cut.
Spinning and deflecting doesn't change what they are doing, so I don't see why you keep bringing Republicans up when they aren't even the topic here.
Why is it we never see you call out Republicans for being in the Rich's' pockets ? The gaul of you attempting to be on higher ground....as your hypocritical hyperbole is hyper happy as anyone can see, due to some Dems being influenced via uber amounts of money, spent to lift their tax burdens, as the pols as usual, reflect where the money originated over the constituents that voted them in. I already state somewhwere in this seed that i find monies from either side subtracting from the 'Uber' rich's tax burden , to be itotal and complete BULLSHIT , so what do you got for me, a couple of Dems touting their lobbyists wishs, yet there are no Repubs ? The GOP is now the party for the really poor, and so many more...???? Yea 'Right' out the Door with that pure hypocrisy lure.
Seriously here now, you STILL can't tell what the topic here is?
Deflect all you want--it's a bad look when you can't discuss what is on topic and have to sadly deflect away.
Troll somewhere else or stay on topic, please.
If you want so desperately to talk about Republicans, seed your own article and swing away!
sorry Tex, don't swing that way, but i see what you say and display, so please, just stop, cause you can attempt to play the notion that it is the Dems who are the primary pushers of tax breaks for the wealthy, but anyone who even sporadically picks up a paper, knows the reality of it. I'm dione here for now Tex, but when i come back to play, we'll see again as usual, how many things you attempt to say to AVOID direct questions, all while ive answered them for you already and stated i would not comment on the peppe4red aSALT till better seasoned,. as i've read not about it. So how bout YOU stop with that childish "i must get the last word in" cause when i'm done, don't now where you begin to start ending what happened in the middle of the ocean, yet , most likely another phishing expedition, cause you got the notion, and i'd like to no way hear more, till i do, cause, i'm here for all to ignore, as it's the rule in this ocean
And you can project all the bullshit you can pack into a sentence, it doesn't change any facts here, or what I have stated quite clearly.
Your continuing attempts to deflect are duly noted and discarded.
"Baseless Class Warfare," huh?
Yeah. Sure. Try Supply Side Economics on for size. See how that fits.
oh, jeez, that tired old argument again?
sigh.